U.S. Stock-Price Anomaly Setup Continues
Chris Vermeulen | Mar 18, 2019 02:15PM ET
This research highlights what we believe to be a unique price anomaly setup in many of the major U.S. markets this week. Our research suggests that April 21, or near this date, will be an important price inflection point base level for the U.S. stock markets. We believe a unique price base will begin to form near this date and that a bigger price move in May/June 2019 will unfold.
Our Advanced Dynamic Learning (ADL) price modeling system is suggesting the rotation in the U.S. stock market may stay somewhat muted before this move on April 21 begins. The ADL predictive modeling system is one of our proprietary price modeling utilities that our research uses to identify key levels of future support and resistance as well as to watch for “price anomalies” that setup. Price anomalies are where the current price level of any symbol is greatly diverted from the ADL predictive price level. When this happens, the price will usually “revert” back to near the ADL levels at some point in the immediate future – sometimes setting up a great trading opportunity.
This daily YM chart shows a current price anomaly in of about 1,000 points. This is a pretty big range for skilled traders that are capable of identifying the right trade. The ADL system is suggesting that YM will rotate lower between now and the end of April by at least 800-1,000 points.
The next weekly YM chart is confirming the daily ADL chart. Both are showing a lower price rotation over the next few weeks. Additionally, the weekly chart is showing a deep price low near May 1, 2019. This aligns perfectly with our earlier analysis that May/June will start a bigger price rotation in U.S. stocks, global equity markets and precious metals.
As we continue to move closer to these important dates, we’ll keep our followers informed, yet the real opportunity exists by knowing how to trade these moves and how to take advantage of the total scope of these markets. Be prepared for a fairly large downside price swing in the YM over the next 5-7 weeks as the 24,800-25,000 attempts to set up support and a momentum base.
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